Timmy elsewhereJanuary 5, 2012 Tim WorstallTimmy Elsewhere2 CommentsAt the ASI. Far from MP\’s bars being subsidised they should be making a profit. previousOh dear Seumas, oh dearnextTimmy elsewhere 2 thoughts on “Timmy elsewhere” SimonF January 5, 2012 at 2:34 pm “wining and dining” Given their constant moaning about their expenses shouldn’t that be whining and dining? Richard January 5, 2012 at 8:51 pm I posted a comment over there. Looking at Guido’s figures, the price looks suspiciously low even with the declared subsidy. I suspect they aren’t allocating Palace of Westminster overheads to the catering. Guido says a rib-eye steak, chips and béarnaise sauce is £13.73 in Parliament (£7.80 charged to the MP plus a £5.93 subsidy). Chez Gerard charge £26 (www.chezgerard.co.uk/menu/a-la-carte), nearly twice as much. Now the usual rule of thumb for a restaurant is 30% ingredients, 30% staff, 30% overheads (electricity, gas, rent, rates, maintenance etc) leaving 10% profit if you’re very lucky. That would divide up the £26 into £7.80 ingredients, £7.80 staff, £7.80 overheads, £2.60 profit. The quoted Parliamentary cost (including subsidy) of £13.73 is 53%, which looks very low. It’s just about believeable that they’re getting the ingredients and direct staff costs for that, but seems unlikely that there’s electric, gas, maintenance, accounting, personnel or other overheads in there, never mind a rent charge. Anyone fancy doing an FoI on whether, and how, they allocate overheads? Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.